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SCHEME OF INVESTMENT AID FOR THE 

DEVELOPMENT OF THE COMMERCIAL 

HORTICULTURE SECTOR 

Funded by the Irish Government under the National Development Plan 2007-2013

Terms and Conditions 

 3rd  Round   (2010) 


General 


This scheme is intended to assist in the development of the horticulture sector, 

including beekeeping, by grant aiding capital investments in specialised plant 

and equipment in commercial horticulture.  The scheme aims to promote the 

diversification of on-farm activities; improve the quality of products; facilitate 

environmentally friendly practices and improve working conditions. 


Under this scheme and subject to conditions 1-31 beneath, aid at a rate of 40% 

(at a maximum rate of 50% in the case of young farmers) will be payable on the 

accepted cost (excl VAT, discounts and allowances) of capital investments 

approved and completed to the satisfaction of the Minister for Agriculture, 

Fisheries and Food. 


The scheme is primarily aimed at those in rural areas engaging in horticultural 

production and/or beekeeping. Non-production investments, which are directly 

associated with primary production, may also be considered. 


As the funds available under the Scheme of Investment Aid for the Development 

of the Commercial Horticulture Sector are limited, investments will be in 

competition for grant-aid. The funding is for investments completed not later 

than 15th October 2010, unless otherwise agreed.  Payment claims will be 

accepted prior to this date.                                  

Application forms may be obtained from Seamus O’Donnell/Bernadette Doran 

at- 

 Crop Production and Safety Division, 

 Department of Agriculture, Fisheries and Food, 

Administrative Building, 

Backweston Campus, 

Young’s Cross, 

Celbridge, 

Co. Kildare. 

Ph…01 5058801 / 5058797 

 E-Mail     Seamus.odonnell@agriculture.gov.ie 

 E-Mail    Bernadette.doran@agriculture.gov.ie                                          

  

Definitions 


For the purpose of this scheme:- 

“the Minister” shall mean the Minister for Agriculture, Fisheries and Food. 

“the Department” shall mean the Department of Agriculture, Fisheries and 

Food. 

“ horticulture” means that branch of agriculture that relates to the cultivation of 

plants used for food or for the production of food or ornament, including the 

technical procedures necessary for the cultivation, production and preparation for 

market of -    

                                             (a) fruit,  

(b) vegetables, (excluding potatoes and seed 

potatoes), 

(c) herbs,  

(d) edible fungi, 

(e) nuts,  

(f) cut flowers 

(g) decorative foliage  

(h) hops 

(i) sports turf, 

(k) honey, 

(l) pot plants, bedding plants and herbaceous plants  

(m) nursery stock and Christmas trees), 

(n) fruit trees, fruit bushes and fruit plants.

  

“investment” means an investment in a commercial horticultural enterprise. 


CONDITIONS FOR GRANT AID UNDER THE SCHEME OF INVESTMENT 

AID FOR THE DEVELOPMENT OF THE COMMERCIAL HORTICULTURE 

SECTOR 

SPECIFIC CONDITIONS 

1.     Applications 

• Applications should be made on an official application form. Sections 

1–11 of the application form should be completed by the applicant who 

should then arrange to have Section 12 completed by Teagasc or an 

approved Adviser. 

•  The required supporting documentation e.g. business plan, latest set of 

accounts and up-to-date and fully descriptive quotations showing net 

cost should accompany the application which must be returned to the 

address as listed on page 2 not later than Friday 19th  February 2010                                       

All quotations submitted must be original and fully descriptive. They 

should be in printed format and on company headed paper. 

• Only fully completed applications with all supporting documentation 

will be accepted by the Department of Agriculture, Fisheries and 

Food.  Incomplete applications will not be considered for grant aid. 

• Applications may be submitted by individual applicants or on behalf of 

groups and other legal entities. In cases of joint or group enterprises, one 

person should be nominated to apply on behalf of the enterprise.  In such 

cases at least one member of the enterprise must meet the eligibility 

requirements.   

•  Applicants must demonstrate that they have the necessary skill and    

competence for the running of the business.  In the case of group or joint 

enterprises, at least one member of the enterprise will be required to 

demonstrate that they have the necessary skill and competence. 


 2.         Eligible investments 

The scheme will be confined to new investments only. 

Applicants must declare where any relationship exists between the applicant 

and the quoting company / supplier.  The nature of this relationship must be 

declared fully on both application and claim for payment forms. 


3. Commencement of Work 

Work on a project must not commence until after the issue of letter of 

approval by the Department of Agriculture, Fisheries and Food following 

the receipt of the fully completed application, otherwise the application will be 

rendered ineligible for consideration. 

Items invoiced or delivered, purchased or payments made before issue of 

approval letter by the Department, are not eligible for grant aid. Where work 

commenced before the approval date, grant aid will not be paid. 

The following preparatory measures will not be deemed to constitute 

commencement of work and may be undertaken whenever appropriate: 

Administrative procedures aimed at obtaining planning permission, planning 

work specifically carried out by for instance, an architect, preparatory studies, 

site clearance and fencing. 

   

4.  Viability 

The horticultural enterprise must be shown to be viable on a commercial scale. 

To enable viability to be assessed, investment proposals must be supported by a 

satisfactory business plan covering a minimum of two years and the most recent 

set of accounts. Applications must contain a comprehensive profile of the 

current and proposed enterprises, outlets, employment etc. Each project will be 

assessed on a case-by-case basis, taking into account the business plan, the 

latest set of accounts and the project profile submitted with the application.  


5. Resale of approved equipment 

Applicants will be required to keep in their ownership /possession, for a period 

of 5 years, such items in respect of which grant aid has been paid.  

These items must be used for horticultural purposes only. 

All items grant aided must be held within the State. 



6.       Financing of approved items 

Leasing agreements will be limited to a period of 4 years and hire purchase 

agreements will not be allowed. 


  7.       Proofs of Payment of relevant invoices   

It will be a requirement for all applicants to submit proofs of payment that are 

acceptable to the Minister. These proofs will consist of original bank 

statements and copies of encashed cheques. Alternatively, on line bank 

statements (only high quality colour printouts with bank logo) with copies of 

encashed cheques will be acceptable or if payment is made by direct credit 

transfer an original bank statement or on-line bank statement listing payments to 

the supplier must be submitted. 

Amounts listed on bank statements must be clearly linked to the relevant 

item on which grant aid is claimed. 

   

  8. Scale of Investments 

The minimum investment which will be considered for grant aid is €10,000,   

except in the case of beekeeping for which a minimum investment of €2,000  

will apply. The upper cumulative limit for investments per applicant over the 

period of the scheme 2007-2013 is €5m. Aid for each investment will be 

decided on the availability of funds and on the ongoing priorities for each sector 

within the industry as well as the quality and scale of the proposals. In some 

cases  only part of an investment may be approved for aid. 


   9. Rate of Grant 

Aid will be payable at the maximum rate of 40% (at a maximum rate of 50% in 

the case of young farmers) on the accepted net cost of investments approved 

and completed to the satisfaction of the Minister. The amount on which the 

grant is calculated will, however, not exceed the actual net expenditure 

incurred, (excl. VAT, discounts and allowances), and paid for by the applicant.   

To qualify for the higher rate of grant aid on the basis of being a young farmer, 

the applicant will have to be under 35 years of age on the date of receipt of a 

valid application by the Department of Agriculture, Fisheries and Food.  

Such applicant’s must submit an original birth certificate with their 

application.   

To qualify for payment of grant aid at the 50% rate an applicant will have 

to be in a position to demonstrate, by the date of application for payment of 

aid, that they are in control of financial management of the grant aided 

enterprise. 


 7 

In the case of applications made by people operating in partnership or 

where more than one person has joint interest in the business the higher 

rate of aid will only be payable where all parties are under 35 years on the 

date of receipt of valid application. 

A company or corporate body will not qualify for the higher rate. 


10.  Limitations 

• Only new materials and/or new specialised horticultural plant/equipment 

will be grant aided. Aid will not be paid for secondhand equipment, 

materials or replacements, except in very exceptional circumstances to 

be determined by the Minister. 

• Aid will not be paid for repair and maintenance. 

• No aid will be paid for projects which commence before issue of letter 

of approval  by the Department.   

• In the case of investments for buildings, the applicant must show details 

of ownership of the site or it’s long-term lease (5 years from 1st January 

2010) 

• Projects which aim to increase production for which no sales outlets can 

be found will not be grant aided. 


11.        Aid from Other Sources 

  If any contribution towards the cost of approved works has been or may be 

made from public funds, otherwise than under this scheme, the amount of aid 

under the scheme may, where the Minister so determines, be reduced 

accordingly. 

          Investment in mushroom enterprises which are eligible for consideration 

for aid under the EU Producers Organisation Scheme will not be grant 

aided under this Scheme 


             An applicant must notify the Department if Business Expansion Scheme    

           or Seed Capital  Scheme investments have been raised and also declare the  

           amount raised.  Where funds have been raised grant aid will be reduced   

           by 20% in the case of applicants in assisted  areas and by 50% in non  

           assisted regions. 


12 Competitiveness of Applications  

Projects will be assessed for aid on a priority basis and the fact that a project is  

aided does not create entitlement for similar projects in this or any future round 

of the scheme. Priorities may change with time or circumstances. 


13. Completion of Investments/ Deadline for submission of claim for payment 

Approved investments must be completed and a claim for grant aid made within 

the period stipulated by the Minister. 

Fully completed claims for payment should be submitted as soon as 

possible but must be received in the Department not later than  

15th October 2010 unless otherwise agreed. Claims for payment 

will be accepted prior to this date.  


14. Legal Provisions, Consents, etc. 

All applicants must undertake to comply with all National and EU Community 

standards in respect of the investments approved under the scheme. 

It is the applicant’s responsibility to ensure that all works shall be carried out in 

accordance with the provisions of all relevant statutes, regulations, byelaws and 

duty of care.  

The onus of obtaining all consents, permissions, etc. including planning 

permission, consent to entry on, or interference with, land, other property or 

right of any other persons, rests on the applicant. 

It will be a requirement for an applicant, where as a producer in the food chain, 

to register with this Department under EU Regulations, ie Regulation (EC) No 

852/2004 of the European Parliament and of the Council on the hygiene of 

foodstuffs.  

Payment of grant aid is subject to compliance with statutory requirements in 

relation to the pay and working conditions of employees. 

Payment of grant aid by the Minister should not be taken as evidence of 

compliance with the above legal provisions, consents, etc.  


 15. Contractors Tax Clearance Requirements 

 In conformity with general practice the payment of financial aid as provided for 

in this scheme is subject to the condition that, where a contractor is employed to 

carry out construction work, that contractor must have a current C2 certificate 

or tax clearance certificate from the Revenue Commissioners. 

 In the case of a non-resident contractor a general tax clearance certificate will 

be required. This provision applies whether or not the non-resident contractor 

has a registered office in this country. 


16. Payment of Tax by Applicant 

In the case of grant awards in excess of €10,000 the applicant must submit a 

current Tax Clearance Certificate. This certificate should be submitted as 

soon as possible but not later than the date of application for payment of 

grant aid. 


General Conditions 


17. Unsuccessful Projects 

Where eligible projects have not been approved for grant aid and have not  

commenced, applicants may re-apply for consideration in the next round of    

applications under the scheme subject to terms and conditions of the scheme at   

that time. 


18.    Information 

 Applicants must provide any information required by the Minister for the  

 administration, control, monitoring and evaluation of the scheme. 


19. Justification for Granting Aid 

Aid for investment will at all times be subject to the condition that, in the 

opinion of the Minister the investment is justified. However, the approval for, or 

payment of aid, does not imply any endorsement by the Minister of a project’s 

safety, technical feasibility and/or economic viability. 


 20. Right of Entry 

The Minister reserves the right to arrange for an inspection at all reasonable 

times of any land, premises, plant, equipment and records of participants or 

applicants for participation in this scheme. 

The applicant or a person nominated by the applicant must make himself or 

herself available to the Department Inspector in order to carry out the necessary 

inspections.  


21.    Responsibility of Applicant 

The approval or payment of aid under the scheme does not imply the acceptance 

by the Minister of any responsibility as regards the stability of any structure, or 

the soundness of any materials used or adequacy for its purposes of any 

investment, which is the subject of such approval or payment. This is the 

applicant’s responsibility in the first instance and the onus is on him/her to 

comply with current requirements as regards Health and Safety. 

The Minister may require certification of quality of work and design. 


22.    Protection of the Environment 

To ensure protection of the environment, applicants: 

• Must agree to farm in accordance with the criteria for Good Agricultural and 

Environmental Condition (GAEC).  They must also participate in the 

appropriate Bord Bia Quality Programmes or recognised equivalent, 

including the environment and hygiene standards set out therein. 

• May be required to make investments or to carry out additional requirements 

over and above that covered in their initial applications e.g. investment in 

hygiene or pollution control.  Such additional works will not be grant aided. 

• May, without prejudice to paras. 17 & 19 be refused grant aid where the 

Minister is of the opinion that the works proposed to be carried out would 

cause damage to the environment – in particular to environmentally sensitive 

areas or to a structure or area of historical or archaeological importance. 

  

 23. False Statements 

Without prejudice to penalties applicable under national law, if, for the purposes 

of obtaining aid under this scheme, a person knowingly makes a false statement 

or withholds essential information, all or such portion of the aid given or to be 

given as the Minister may determine shall be reimbursed or withheld. The 

Minister reserves the right to exclude such a person from further participation in 

the scheme for such a period as she/he shall determine. 

  

 24. Withdrawal of Aid 

 The Minister may withdraw approval of aid if the applicant fails to abide by the 

conditions of the scheme. In such event all or such portion of aid given or to be 

given shall be reimbursed or withheld as the Minister may determine. 


25. Recovery of Aid 

The Minister reserves the right to recover any grant aid paid where the 

investment aided does not continue to be used for horticultural purposes for a 

period of at least 5 years,  



26. Review of Financial Aids 

The Minister reserves the right to vary, where occasion so demands, the amount 

of financial aid specified in the scheme subject at all times to the provision of 

any relevant European Union legislation. 


27. Procedures 

 The Minister shall lay down the procedures to be followed in the operation of  

 this scheme and reserves the right to alter these procedures from time to time. 


28. Conditions of Approval 

 Every approval of development works and purchases under this scheme shall be 

subject to all conditions laid down by the Minister being complied with in full 

by the applicant. 

  

29. Charges for Visits and Services 

 The Department of Agriculture, Fisheries and Food reserves the right to impose 

a charge for visits made, and services provided, by its officials in connection 

with the scheme.   


30. Decision of the Minister 

 The decision of the Minister on any matter relating to this scheme or to any  

 works there under shall be final. 


31. Additional Conditions 

 The Minister may at any time lay down additional conditions for the           

implementation of this scheme. 


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